7 Ways Fintech Initiatives Are Changing Lives In Nigeria
Fintech is disrupting almost every aspect of our daily living and it is not likely to go away. Through Fintech, you can send money to people from the comfort of your home, with the use of platforms like PayPal, or Flutterwave. It has made it easier to perform online payments, such that you don’t have to go around with your purse. Once you have your mobile and your card, you’re good to go to make payments. According to a report made by PricewaterhouseCoopers (PwC) in 2016, Fintech investment jumped from $5.6 billion in 2014 to $12.2 billion in 2015.
Innovations in Fintech has changed how we make payments, how we invest, and how financial operations are carried out. It has totally changed the nature of money, and there’s a hope that it will expand more into banking, and create opportunities for people in the income and financial world. Below are areas Fintech initiatives has changed the lives of people and businesses in Nigeria.
- Investment advice
One of the promises of Fintech is to make financial services available to everyone in order to extend their reach. Before now, investment used to be seen as financial options only for the wealthy, but with the invention of new technologies, everyone can now make the decision of investment. New technologies have made investment so general with the use of automation and robotics (robo-advisors) which provide algorithm-based investment advices.
According to Farrokhnia, robo-advising has changed investment methods, helping customers to invest their money in long-term contracts with low risk and high returns. Betterment is one of the top leads of robo-advising, which uses algorithms to determine where to invest customers’ money. It focuses on passive investing, which has proven to be better than other investment platforms. Betterment was first launched with the aim of correcting a problem in in vesting, they wanted to give people better lives and make them happy as they put their money to good use. Betterment eliminates the conflicts in investment and makes it available to a large number of people.
- Children’s Savings Account
Amy Moses, founder of Ballooning Nest Eggs is a company that allows parents to crowdfund their children’s saving accounts. The goal of her company is to turn the modern world into one that is fully online and donates to a child’s savings account. The company functions like a social media platform that contains the child’s pictures and life events on the profile. The platform provides what is not currently in the market – a network that allows parents to send money to their children conveniently. She doesn’t only focus on technology, but also on changing people’s attitude towards money. She hopes to be able to use technology to focus on children’s ability to receive and send money with ease.
- Online payments
Fintech has made online payments easier. It has changed how people handle their finances, account balance and cash flow. Customers now rely on automation to make their online transactions easier and convenient. Financial institutions have failed when it comes to providing their services, and this is why Fintech is gaining ground in the financial world. The goal of Fintech is to provide easier and convenient ways to make payments, and to bring improvement to the traditional method of payments. Companies are now incorporating this into their business, such that you can order for goods online and pay online with no fear of fraud.
The use of mobile wallet apps also helps you to make payments, but beyond that, you get to save card details such that it becomes easier to perform operations subsequently. This means you don’t necessarily have to carry multiple cards around in your pockets anymore.
- Artificial Intelligence (AI)
AI is helping customers and businesses get the best services available. It helps companies improve their products, process, and schedule payments faster, as opposed to when Fintech was not around. With AI, companies get to perform operations that seem impossible to man, easier and faster. It has greatly improved customer service experience and satisfaction, as customers no longer have to come physically to offices to have their complaints taken care of and resolved.
Artificial Intelligence enhances customer engagement, and also improves the precision level in the industry. It allows customers to be more involved with businesses, and helps to keep a brand in the minds of customers. It helps Fintech to resolve human problems, enhancing efficiency, and to improve different methods of human issues. Fintech can be said to be synonymous to comfort and ease, because that is basically what it brings to the financial world.
- Lending made easier
Fintech companies have taken care of lending operations in that there is no need to have an intermediary between the lender and the lendee. Previous operations of lending needs to have a bank as an intermediary between a client and the loanee, which usually cost a lot, but Fintech has brought a solution to that. According to an analysis carried out by online lender LendingTree, customers are getting more loans faster than they did when Fintech was not here.
- Leverage tool
Fintech now stands the chance to compete with other big and established companies in operation. Even small businesses that take advantage of technology and Fintech can now offer great services to their customers with ease. They leverage on artificial intelligence and other software to increase their market share. Fintech can be said to be a great equalizer as it allows small companies to be able to compete in the business world.
- Small business
Fintech has been a source of change for entrepreneurs, and has made it easier for small businesses and startups to manage payroll, secure loans, and process payments. It has helped small businesses to prove that they’re now worthy of larger banks’ attention, considering that they have a history of high-risk financial institutions before now. Banks are now beginning to change their perspectives on small businesses and enterprises, and they now realize that there’s an opportunity for them too.
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